Shillong: The Meghalaya government is standing by its ongoing excise reforms, dismissing criticism from liquor retailer associations as selective and incomplete. According to the Excise, Registration, Taxation and Stamps Department, these changes are vital for ensuring fiscal stability and preventing revenue leakage in a highly regulated sector.
Central to the initiative is the Integrated Excise Management System. By utilizing QR-based tracking and digital inventory, the government aims to modernize the trade while curbing the circulation of counterfeit products. Officials noted that similar systemic modernizations are currently being implemented in states like Delhi and Karnataka.
The government also addressed concerns regarding the recent reduction in retailer profit margins. While margins were lowered from 20 percent to 15.5 percent, officials emphasized that these rates remain among the highest in India. For context, retail margins are capped at 7 percent in West Bengal and 10 percent in Karnataka and Tamil Nadu. The state also maintains strict caps on margins for bonded and central bonded warehouses.
These adjustments follow audit reports that uncovered significant losses under the previous excise framework. The government affirmed that revenue generated from the sector directly funds public welfare programs and developmental projects. While the state is currently reviewing the matter within the High Court legal framework, the Excise Department expressed a willingness to engage in dialogue with industry stakeholders to maintain market stability.
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